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Compensation Plan

Binary Compensation Plan


USANA is dedicated to helping you get the most
out of lifeand this includes giving you the opportunity to create your own engaging, sustainable, and ultimately financially successful USANA
business. Our compensation plan reflects this
dedication, as it gives every Independent USANA
Associate the best opportunity for direct-selling
successa plan that establishes a departure from
the traditional multi-level marketing requirements
of heavy sponsoring and large group volumes.

right side of your organization. Each product has a point


value, and the points from product sales will begin to flow
up through your business when you and your team members purchase product for personal use and re-sell to customers. The points accumulated by your team are known
as Group Sales Volume, and youll receive weekly commissions based on where the Group Sales Volume on the
left side of your business matches the Group Sales Volume
on the right. Unlike other compensation plans, extra volume (up to 5,000 points per side) will roll over into the next
commission period.

The USANA Binary Compensation Plan eliminates many


of the pitfalls that plague traditional direct-selling plans.
Here are some of the benefits of USANAs unique Binary
Compensation Plan:

By building a team of Associates and developing a
strong base of customers, you can begin to realize
financial success.
There is no limit to the depth from which you can earn
commissions.
Commissions are paid weekly.

Team members are incentivized to help you build a
successful team.

Success among Associates is widespread and evenly
distributed; the plan is fair to everyone involved.

LIFETIME MATCHING BONUS

AREAS OF INCOME
There are six ways to earn income with the USANA Binary
Compensation Plan:
Retail Sales
Weekly Commissions
Lifetime Matching Bonus
Incentives
Leadership Bonus
Elite Bonus

RETAIL SALES
Associates are distributors of USANA products. This means
you can purchase products at our special Preferred Price,
and when you sell these products to your customers at retail price, you earn an immediate profit. The difference between what you pay for the product and the price at which
you sell the product is your retail profit. The importance of
selling cannot be overemphasized. It is the best way for you
and your new team members to earn immediate income
while building a long-term base of satisfied customers for
your business. In fact, many of your best Associates will
likely come from the ranks of your retail customers.

WEEKLY COMMISSIONS

You can begin receiving Lifetime Matching Bonus when


you and your new team members each reach a certain
PaceSetter status within your first eight weeks as an
Associate. (To learn more about the PaceSetter program,
go to The Hub, select the Training menu, and click on
PaceSetter Program.)
Lifetime Matching Bonus will pay you up to a 15-percent
match on the base commissions of your new Associate for
the life of his or her USANA business.* And heres the best
partyou can receive a bonus for each qualifying Associate you personally sponsor, putting you on the pathway to
residual income.
*As long as you are commission qualified and in compliance
with the Associate Agreement. Please see official rules on
The Hub.

INCENTIVES
No matter your rank, you can be rewarded with luxury
travel, prizes, and even extra cash when you participate in
USANAs generous incentive programs.

LEADERSHIP BONUS
A portion of USANAs total Group Sales Volume is divided
among qualifying Associates. This incredible bonusmore
than $14 million in 2012is typically paid weekly to leaders
who have reached a certain rank, continue to sponsor new
Associates, and have built large businesses. Your portion of
this bonus depends on your rank, the size of your business,
and the volume your business generates over a specific
period of time.

ELITE BONUS
Every three months, over $1 million US is divided among
USANAs top 40 income earners.* The Elite Bonus is a
percentage of USANAs total Group Sales Volume for the quarter, distributed among five different tiers of qualifying Associates, and is a powerful way to increase your earnings potential.
*Actual payout amounts vary each quarter.

With USANAs Binary Compensation Plan, you build your


business by placing team members on both the left and
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BEFORE YOU BEGIN


Before you begin building a business, youll need to fill out
the proper paperwork. First, complete and sign an Associate Application and Agreement form. Then, submit the
original to USANAs Data Processing office with appropriate payment for a Business Development System (BDS).
You may also submit this information electronically through
Online Enrollment. Once weve received and processed
your application, you may begin building a USANA business by sponsoring other people as Associates or Preferred
Customers. USANA Associates may immediately begin
purchasing products at Preferred Pricing for their personal
consumption and have the added benefit of being allowed
to resell products purchased at Preferred Pricing for a retail
profit.

GETTING STARTED
When you purchase productsboth for your personal use
and to re-sell to retail customersyoull begin to accumulate points from each product. Youll need to generate a
certain number of points each month to keep your business
activethis is Personal Sales Volume.
But dont worry, youre not alone. USANAs Binary Compensation Plan is built to help you succeed, and it centers
around teamwork. The points your team members accumulate individually are pooled together into Group Sales Volume. Its your Group Sales Volumethe amount of points
your team accumulates togetherthat determine the size
of your commissions.

STEP 1: OPEN YOUR BUSINESS CENTER(S)


The Binary Compensation plan is centered around Business Centers. A Business Center is the hub of your business-building activity, through which your product purchases, volume, and sales accumulate; its similar to opening a
store for your business. To begin, you can choose to build
your team around one or three Business Centers, based on
whether youd like to start a small business or a large businessits up to you.

Opening One Business Center


To open one Business Center and begin earning commissions, youll need to generate 200 points in Personal Sales
Volume. You can generate the required volume through a
single order for your personal use and/or for your customers, or it can be accumulated through many ordersjust remember, your Business Center wont open until you generate enough Personal Sales Volume. The name of your first
Business Center is BC1.

Centers, with 200 points in Personal Sales Volume placed


in BC1, 100 points placed in BC2, and 100 points placed
in BC3. This means you will immediately begin with 100
points in both the left and right sides of BC1, so youll
already be that much closer to getting your first commission check. This is one of the benefits of opening three
Business Centers.

STEP 2: SIGN UP FOR AUTO ORDER


Before you sell USANAs top-rated products, you really should
use them yourself. And although this step isnt required, its
important to become a product of the producttheres no
easier way to do that than by setting up an Auto Order.
Available to Associates and Preferred Customers, an Auto
Order is a reoccurring shipment sent directly to you on a
regular basis. The products you order, and the frequency
with which they ship, are all up to you. Its the perfect way
to keep on top of your product supplies and will help you
maintain consistency in your own daily product regimen,
and it can also help increase your earnings potential by
ensuring you have a minimal inventory from which to
re-sell to your retail customers. Best of all, you will receive an
additional 10 percent off the already reduced Preferred Price
on qualifying products purchased through Auto Order.
To take advantage of this program, simply complete
an Auto Order form or fill out an order on The Hub by
selecting the Shop & Orders menu and clicking on My
Auto Order and specify the products and sales tools you
would like to automatically receive every four weeks. Well
make sure your order is filled and shipped directly to your
home or place of business. Place your Auto Order today!
Please note: You must cancel your participation in the Auto
Order program if you do not sell or personally consume at
least 70 percent of your purchased products.

STEP 3: BEGIN TO BUILD


Whether you decide to open one Business Center or three
Business Centers, the most important step is to get started.

Building with One Business Center


You can start building your business by finding new customers.
Youll also need to sponsor two new Associates to join your organization (for example, Jill and Bob in Figure A). These new
team members will form the left and right sides of your Business
Center, and as the three of you find new customers and sponsor
new team members, your Business Center will begin to grow.
Figure A

YOU

Opening Three Business Centers


To open three Business Centers (BC1, BC2, and BC3), you
must generate 400 points in Personal Sales Volume within
your first six Fridays as a new Associate. Failure to generate
the required volume will result in the loss of your second
and third Business Centers (BC2, BC3). If your initial product purchase is equal to at least 400 points, your order will
be automatically distributed among the three Business
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BC1

BOB

JILL

Sue

For example, suppose you sponsored a third new Associate named Sue. You must place Sue in an open position
somewhere in your organization, so you place her on the
right side of your Business Center under Bob. Not only will
you benefit from the volume Sue generates as she builds
her own business, but Bob will benefit from her efforts as
well. The cooperative structure of USANAs unique Binary
Compensation Plan allows you and your team members to
build successful businesses by working together.

How do I add a new team member to my


organization?
Placement must be identified on the Associate Application
and Agreement, so you will need to work with your new
team member as he or she fills out this form. If you are the
sponsor, then be sure to record your own Associate number in the section titled Your Sponsor Information. Next
to this section is Your Placement Information, where you
will indicate the Associate number of the person your new
team member will be placed directly under. You will also
need to indicate the Business Center and side where you
will be placing your new Associate. For example, if you were
sponsoring Sue Smithyour new Associateand placing
her directly under you on the right side of your BC1, then
under Your Placement Information you would write down
your Associate number, BC1 (or 001) in the Business Center
field, and then check the box that says Right Side.
Note: Be absolutely certain to fill out the placement information correctly. The Home Office cannot change the
placement of new team members once they have been entered into the system.

Building with Three Business Centers


Beginning a USANA business with three Business Centers
is essentially the same as beginning with one, only now
you have two Business Centers in which to place new team
members (see Figure B).

Figure B

YOU
YOU

YOU

BC2

BC3

SUE

Earning Commissions from Your Business Center(s)


As your organization begins to grow, Group Sales Volume
will accumulate. Group Sales Volume is a collection of the
Personal Sales Volume points you and your team members
earn individually in a single Business Center. (Note: Group
Sales Volume doesnt include Personal Sales Volume from
your BC1. These points are required on a monthly basis to
keep all of your Business Centers active, and while they
count toward your sponsors Group Sales Volume, these
points do not count toward your own. However, in the case
of three Business Centers, Personal Sales Volume points
from your BC2 and BC3 will roll up to your BC1 to count toward your BC1 Group Sales Volume.) Once everyones Personal Sales Volume points are pooled together into Group
Sales Volume, you will begin to earn commissions.
Note: To receive commissions from Group Sales Volume,
you must be an active USANA Associate generating sales
totaling 100 points in Personal Sales Volume in your BC1
every four-week rolling cycle (or 200 points to receive commissions from multiple Business Centers), and each side of
your Business Center(s) must generate a cumulative minimum of Group Sales Volume points. You must also meet the
sales requirements stipulated in your Associate Agreement.
USANAs Binary Compensation Plan is all about symmetry
and teamwork, which means its important that the volume
on the left side of your Business Center comes as close as
possible to matching the volume on the right side of your
Business Center. The side of your Business Center generating fewer points in Group Sales Volume is called your small
side, which means its the side of your business that needs
to be built in order to help the two sides match. Either side
of a Business Center can be your small side, and they can
switch back and forth as you build your business.

Calculating Commissions

BC1

JILL

you will build your business by adding new team members


to BC2 and BC3, but you will receive commissions based
on all three of your Business Centers as the Group Sales
Volume from BC2 and BC3 roll up to BC1. Confused? Keep
reading. Itll make sense in a minute.

BOB

MATT

Once you have opened all three of your Business Centers,


you may begin building BC2 and BC3 in the same way you
would build BC1 had you started with just one Business
Center. You can place four new team members in the open
positions directly below your second and third Business
Centers, and you can also continue to generate volume
through personal sales. The advantage of having three
Business Centers is that you will build your team under two
Business Centers, but get paid on three. In other words,

Commissions are awarded in Commission Volume Points,


which are converted to your local currency. To calculate
your commissions, simply find where the Group Sales Volume on the left side of your Business Center matches the
Group Sales Volume on the right side, and multiply it by 20
percent (or 0.2). Or in other words, take the Group Sales
Volume on your small side and multiply it by 20 percent.
To receive a commission check, each side of your Business
Center must reach a minimum of 125 points in Group Sales
Volume. When you do, youll earn 25 Commission Volume
Points, which will be converted to your local currency and
paid to you!

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Lets look at an example: Suppose you chose to build a business with one Business Center (see Figure C). In a single
week, the left side of your Business Center accumulated
sales that total 400 Group Sales Volume points, and the right
side had 450. First, we have to make sure youve reached a
minimum of 125 Group Sales Volume on each side. Since you
have, we can calculate your commissions by multiplying the
Group Sales Volume on your small side by 20 percent. In this
case, your small side is your left side. 400 Group Sales Volume
Points X 20% (0.2) = 80 Commission Volume Points. This will
be converted into your countrys currency and paid to you.
Figure C

YOU
BC1

JILL

BOB

400

450

400 GSV

20%

80 CVP

Remember, in calculating commissions, we dont count levels, we only count point volume. For example, if Jill and
everyone under her generated 2,100 points in Group Sales
Volume (left side) and Bob and everyone under him generated 2,100 points in Group Sales Volume (right side) during a single week, you would earn 420 Commission Volume
Points, regardless of the level in your organization at which
this volume occurred. If your goal is to earn 1,000 Commission Volume Points a week, you will need to build a Business Center where both the left and right sides generate
5,000 points per week in Group Sales Volume.
At USANA, commissions are calculated and paid weekly,
so you are rewarded for your success almost immediately.
In most direct-selling plans, commissions are calculated
monthly and usually not paid until the latter part of the following month. This means people often wait almost two
months to be paid for volume generated in the first part of
each month. This single feature of the USANA Binary Compensation Plan will do wonders to keep your team members motivated and working toward continued success.

INCOME COMPARISON: ONE BUSINESS


CENTER VS. THREE BUSINESS CENTERS
Assume that each Business Center (including your own) in
Figure D is active and commission qualified for the current
week. In the top example of Figure D, you have one Business Center. You and your team members have worked together and generated 1,200 points in Group Sales Volume
on both the left and right sides of your Business Center.
Since both sides match, commissions will be calculated
by multiplying 1,200 points by 20 percent: this equals 240
Commission Volume Points, which will be converted into
your countrys currency and paid to you.
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To find your total weekly commissions with three Business Centers (bottom example of Figure D), simply add
the Group Sales Volume from each Business Center and
then multiply the total by 20 percent. In this example, your
second and third Business Centers (BC2, BC3) each have
600 points in Group Sales Volume on the left side and 600
points on the right. Because the points on both sides of
BC2 match, there isnt really a small sidewell take 600
points and add it to our column on the right. Well follow
the same steps for BC3, which means well add another 600
points in Group Sales Volume to the column on the right.
But were not donenow we need to include the volume
for your first Business Center as well. Because BC2 and
BC3 are located under your BC1, the total group volume
from your second and third Business Centers roll up into
your first. This is what makes building with three Business
Centers so powerfulyoure essentially getting paid twice.
Figure D

1BUSINESS
CENTER

YOU
BC1

JILL

BOB

1200

1200

1200 GSV

3 BUSINESS
CENTERS

20%

240 CVP

YOU 1200

1200

BC1

YOU

YOU

BC2

BC3

JILL

SUE

BOB

MATT

600

600

600

600

BC1
BC2
BC3

1200
600
600
2400

2400 GSV

20%

480 CVP

Remember, the total Group Sales Volume on the left side of


your first Business Center includes all of the group volume
from BC2 (a total of 1,200 points). The group volume on the
right side (flowing up through BC3) also has 1,200 points.
Since both sides of BC1 match, we can simply take 1,200
points and add it to the column on the right as well.

Now, we add the Group Sales Volume points from each


Business Center and multiply the total number by 20 percentthis comes to a total of 480 Commission Volume
Points for the week. Compare this to the 240 CVP you
would get for having the same group volume with only one
Business Center, and you can easily see the difference.

ROLLOVER VOLUME
The Group Sales Volume on the left and right sides of your
Business Centers arent always going to match, but thats
okay. Any extra Group Sales Volume (up to 5,000 points on
each side) will roll over into the next commission period.
Assume that each Business Center (including your own) in
Figure E is active and commission qualified for the current
week. In the top example of Figure E, you have one Business Center. You and your team have generated a total of
1,400 Group Sales Volume points on the left side, and 1,500
Group Sales Volume points on the right. The left side is
currently your small side and you will be paid commissions
for the volume on that side. This means you will be paid
for 1,400 points on each side, which equals 280 Commission Volume Points (1,400 X 20% = 280). Since you received
commissions for all of the points on your left side, that side
will carry 0 rollover points in the next commission period.
But there are still 100 points remaining on the right side of
your Business Center, which will roll over into the next commission period (and each subsequent commission period,
until those points are matched with at least 125 points from
the left side).
In the bottom example of Figure E, the left and right sides
of BC2 match at 700 Group Sales Volume points, and the
left and right sides of BC3 match at 750. Group volume
from both Business Centers roll up to BC1, but the volume
on each side of that Business Center doesnt match. The
small side of BC1 is on the left with 1,400 points, so thats
the number well add to our Group Sales Volume column.
Now we can add all of the group volume and then multiply the total by 20 percent, which equals 570 Commission
Volume Points. In this situation, the left side of BC1 would
have 0 points roll over into the next commission period,
while 100 points would roll over on the right.

100 points in Personal Sales Volume. As soon as you want


to start qualifying for commissions on your second and
third Business Centers, you can do so by upgrading your
Personal Sales Volume to 200 points for each four-week
rolling period. Understand, however, that volume in your
second and third Business Centers will not begin to accumulate until you have qualified to receive commissions on
three centers with 200 points in Personal Sales Volume.
It is also important to understand that your first 200 points
in Personal Sales Volume during any given four-week rolling period will be placed in your first Business Center (BC1).
If, at any time, you allow your Business Center(s) to become
inactive, all volume within each of your Business Centers
will be erased, and the volume will begin at 0 points when
the Business Centers are reactivated. Remember that your
sales requirements must be met at all times in order to
qualify for commissions.
Figure E

1BUSINESS
CENTER

BC1

JILL

BOB

1400

1500

1400 GSV

20%

Left Rollover:

0 GSV

280 CVP

Right Rollover:

100 GSV

3 BUSINESS
CENTERS

1400 YOU 1500


BC1

YOU

YOU

BC2

KEEPING YOUR BUSINESS CENTER(S) ACTIVE


To receive commissions in the USANA Binary Compensation Plan, you must keep your Business Center(s) active by
achieving a minimum Personal Sales Volume requirement.
To keep one Business Center active, you must achieve
at least 100 points in Personal Sales Volume during each
four-week rolling period. To keep two or more Business
Centers active, you must achieve at least 200 Personal
Sales Volume points during each four-week rolling period.
IMPORTANT: If you begin your business with three Business Centers, you are not required to achieve 200 points
in Personal Sales Volume from the very beginning. Even
though you have three Business Centers, you may choose
to concentrate on building BC1 early on. Therefore, you
can qualify for commissions from this Business Center with

YOU

BC3

JILL

SUE

BOB

MATT

700

700

750

750

BC1
BC2
BC3

1400
700
750
2850

2850 GSV

Left Rollover:

0 GSV

20%

570 CVP

Right Rollover:

100 GSV

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FOUR-WEEK ROLLING PERIOD


A four-week rolling period equals four pay periods (four Fridays) after you place a product order of 100 points or more.

Figure F

YOU
BC1

AUTO ORDERS: SAVE MONEY, SAVE TIME


Find convenience and ease of mind by purchasing product
through Auto Orders. In addition, Auto Orders qualify for
10 percent off the Preferred Price, so youll save money and
potentially increase your retail profits. To receive the additional savings, youll need to set up an Auto Order in advance and allow it to process automatically as a weekendprocessed order. In addition, only products that generate
points qualify for the discountproducts like logo merchandise or sales tools generate point values (or volume)
of zero, which means they do not qualify for Auto Order
savings.

YOU

YOU

BC2

JILL

BC3

SUE

Place your new Additional Business


Center within your team

BOB

MATT

YOU

PREFERRED CUSTOMERS
Another way to accumulate Group Sales Volume is by adding Preferred Customers to the left and right sides of your
Business Centers. Preferred Customers are able to order
products at our Preferred Pricing (and even qualify for additional savings by ordering products through Auto Order),
but they do not earn commissions. Although you do not
earn retail commissions from Preferred Customers, their
orders do earn you points, which are added to your total
Group Sales Volume for the Business Center in which they
have been placed.

OPEN ADDITIONAL BUSINESS CENTERS


When you maximize a Business Center (by generating
5,000 points in Group Sales Volume on both the left and
right sides of the Business Center), you will be issued an
electronic Additional Business Center Certificate. You can
receive a total of up to two certificates to open Additional
Business Centers for each existing Business Center you
have maxed. With this certificate, you may open a new
Business Center at the bottom of your organization. This
allows you to help others in your team by being involved
at a deeper level. Once you establish where you want to
open your Additional Business Center (see Figure F), the
next step is to send a written request to Distributor Services with information about where you would like the new
Business Center to be placed. Your written request must
be attached to a product order form. Additional Business
Center Certificates will not expire. Your first two Additional
Business Centers may be placed at the bottom of any side
in your organization, however, future Additional Business
Centers must be placed at least 10 active Associates BC1
Business Centers away from any of your previously existing
Business Centers.

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For purposes of placing Additional Business Centers, an


active Associate is defined as an Associate that is qualified
to earn commissions. You can then activate the new Business Center by generating 200 points in Personal Sales Volume, as indicated in Step 1 (this must be in addition to the
100 or 200 Personal Sales Volume points required to keep
your existing Business Centers active during the four-week
rolling period). Once you have opened your new Business
Center, you can keep it and all other Business Centers active during each four-week rolling period by generating 200
points in Personal Sales Volume. Regardless of the number of Business Centers you have, your personal volume
requirement will never exceed 200 points. Once you open
a new Business Center, you may begin building a team under it. When you have achieved 5,000 Group Sales Volume
points on each side of your new Business Center in a single commission period, you will receive a new Additional
Business Center Certificate to open yet another Business
Center. Because you can receive up to two Additional Business Center Certificates for each of your original Business
Centers, as well as two Additional Business Center Certificates for each new Business Center, there truly is no limit
to the number of Business Centers you can have in your
organization. Because sales in each new Business Center
will generate commissions not only for itself, but also for all
the Business Centers you may have above it in your organization, developing new Business Centers will strengthen
your entire team.

MOVING AN ADDITIONAL BUSINESS CENTER


Once an Additional Business Center has been placed,
it may not normally be moved. However, USANA reserves
the right to allow placement changes as long as the new
Business Center has had no activity (either Group Sales
Volume or Personal Sales Volume) within the last six months
and all other rules for the placement of a Business Center
are followed. Any such request must be in writing and can
only be approved by the Compliance Committee.

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